Camera company Eastman Kodak is apparently preparing to file for Chapter 11 bankruptcy protection. The Wall Street Journal reports that if the company fails in its efforts to sell off a 'trove of digital patents' it will file for Chapter 11 in the coming weeks.
According the WSJ sources, Kodak is currently negotiating with potential lenders for roughly $1 billion debtor-in possession financing that would keep it afloat during bankruptcy proceedings. The filing itself could happen as soon as this month or early next month.
Though Kodak has refused to comment on the report (stating that it doesn't comment on rumors or speculation), the company's shares have taken a nosedive following the news, falling more than 28 percent to 46 cents.
This is the second blow for Eastman Kodak this year. Earlier this week, the company was warned that it would be delisted from the NYSE if its price-per-share remains below the minimum price-per-share requirement of $1 for the next six months. According to Bloomberg, this means Kodak's stock must have a closing price of at least $1/share on the last trading day of any calendar month during the six-month period. Additionally, the company must maintain that average over the previous 30 trading days or on the last day of the six months. The company was put on notice following 30 consecutive days below the minimum price-per-share requirement.
Eastman Kodak was founded by George Eastman in 1892 in Rochester, New York. Eastman is credited with bringing photography to the masses through the use of roll film. In 1975, a Kodak engineer by the name of Steven Sasson invented the digital camera.